Financial Aid Presentation 2010-2011

1. Financial Aid Presentation2010-2011 Contact Ms. Severo in the Career Center: • Mondays/Thursdays @ REV • Tuesdays/Wednesdays @ RHS • Friday @ CVHS

2. College - It Pays! • As a college graduate, you have a higher chance at getting a higher paying job, steadier employment, greater career opportunities and a better chance at liking your career • Median Income 3Q 2009 by Education: • < High School Diploma ($23,296) • High School Graduate ($32,292) • Some College ($37,440) • Bachelor’s Degree ($53,352) • Advanced Degree ($69,472)

3. How do I pay for college? • Apply through FAFSA (Free Application for Federal Student Aid) • Apply free online at: www.fafsa.ed.gov • Click here  www.fafsa.ed.gov *If you are asked to pay for the submission of your application, you are on the wrong website - It is a Scam!

4. www.fafsa.ed.gov NOT- www.fafsa.com

5. THE FAFSA WEB PAGE DOES NOT LOOK LIKE THIS

6. Dependent vs. Independent (p. 25) • Whether you're a dependent or an independent student will determine whose financial information you’ll need to report on the FAFSA. • You are considered independent if you can answer yes to at least ONE of the questions listed – not whether you live on your own, or if your parents no longer list you as a dependent on their tax return or feel it’s not their responsibility to help you pay for college.

7. Types of Financial Awards • Grants - free money based on financial need • Scholarships - free money based on merit or specific criteria (i.e., test scores, grades, athletic, musical or special talent or other criteria) • Loans - Unsubsidized vs. Subsidized • Work Study - earn money through your college on or off campus • Other - AmeriCorps, Peace Corps, Teach for America, Military, Co-op Education or National Merit Scholarship

8. Cal Grants (pgs.4-7) • Aid covers books, tuition, rent and food • If you attend a community college, you will receive a fee waiver and this money will be held in reserve until you transfer to a four-year university. • Cal Grant C’s will help cover the cost of vocational school $2,592 for tuition and fees and $576 for books.

9. Entitlement vs. Competitive • Cal Grant entitlement awards are guaranteed for every high school graduate who has at least a 2.0 GPA, meets the requirements for financial need and applies by March 2nd of senior year. • Competitive Cal Grants are available to students who are not high school seniors or recent graduates. They are guaranteed and there are a limited number available.

10. Federal Grants (p.4) • Pell Grants- need-based, from $400 to $5,350 • EOP- need-based, $100 to $4,000 (Pell eligible) • SMART Grant - majoring in sciences, math, technology, engineering or certain foreign languages (up to $4,000- Pell eligible) • Academic Competitiveness - need-based (Pell), completed a “rigorous” curriculum (A-G), $750 (1st year) and up to $1,300 (2nd year) • Chafee Grant- Foster Youth up to $5,000 (application available at www.csac.ca.gov) • Child Development- $1,000(2-yr) & $2,000 (4-yr) • TEACH Grant – agree to teach in a high-need field serving low-income students (up to $4,000)

11. How do You Qualify? • Have a high school diploma or a GED • Must be a U.S. Citizen or eligible non-citizen with a valid Social Security number • Have at least a 2.0 GPA or higher • 2.0 for Cal Grant B • 3.0 for Cal Grant A • Financial Need (for most financial aid awards) • Enroll in either a 2 or 4-year college or vocational school leading to a degree or certificate • Enroll at least half the time- 6 semester units or its equivalent. • Register for the Selective Service (males only)

12. How do You Apply? • Collect financial information (p. 24) • Tax returns for 2009 (yours and your parents), W-2 forms, bank statements, etc. • SSN of student and parent • Get a pin for you and your parent • Complete rough draft using the FAFSA worksheet (not yet available online) • Complete final draft online (www.fafsa.ed.gov) • Apply early! Start January 1st – it increases your chances. DEADLINE is MARCH 2, 2010 • Look into Federal Student Loans

13. Double Check!! • Read all instructions • Make sure your name matches your name on your Social Security card • Be sure to type in “CA” if you’re a resident • Don’t skip the drug question • Be sure to list at least one qualifying California college to be considered for a Cal Grant • Private California college comes first • Print a copy of your FAFSA application • Use your PIN to sign your application and check on the status of your FAFSA • Click here to check your status (www.nslds.ed.gov)

14. Problems? FAFSA Hotline • For questions on the application or eligibility requirements, call: • 1-800-4-FED-AID (1-800-433-3243) • www.studentaid.ed.gov

15. Scholarships • Resource Listing (see green sheet) • Counseling Office Listing • Not always based on GPA or Merit

16. Loans – Federal Stafford Loans • Subsidized – the federal govt. pays the interest while you’re in college and during the 6-month grace period. Based solely on financial need. • Unsubsidized – you are responsible for paying all the interest on your loan. You can defer interest payments while in school. Interest will be added to the amount you borrowed . For all eligible (p.1)students regardless of income.

17. Loans – (continued) • Federal Perkins Loans - low-interest for students with exceptional financial need. These loans are made by colleges, have 0 percent interest during school and there are no fees. Nine month grace period and then repayment at 5% • PLUS Loans – Parents or stepparents (whose info in on FAFSA) can borrow up to the total cost of your undergraduate study minus any other aid you may receive. (Legal guardians cannot take out PLUS loans for your study.)

18. Basic Equation of Need #1(CSU) COA $14,591 - EFC $ 1,240 Student’s Financial Need = Need$13,351 The amount of Financial aid the Financial Aid Office will try to find (called a PACKAGE).

19. Sample Financial Aid Pkg. #1(CSU) Financial Aid Package Financial Need $13,351 Pell Grant $3,200 $ 10,151 Cal Grant $2,334 $ 7,817 Work Study $2,400 $ 5,417 Loan $2,625 $ 2,792 Unmet Need $ 2,792

20. Analysis of Sample Pkg. #1(CSU) EFC ($1,240) + Unmet Need ($2,792) = $4,032 You can cover these costs by using: • Savings • Scholarships

21. Basic Equation of Need(Private School) Cost of Attendance COA $25,500 - EFC $ 1,240 Student’s Financial Need = Need$24,260 The amount of Financial aid the Financial Aid Office will try to find (called a PACKAGE).

22. Sample Financial Aid Pkg. #2(Private School) Financial Aid Package Financial Need $24,260 Pell Grant $3,200 $21,060 Cal Grant $8,322 $12,738 Work Study $2,400 $10,338 Campus Grant $6,000 $ 4,338 Loan $2,625 $ 1,713 Unmet Need $ 1,713

23. Analysis of Sample Pkg. #2(Revised -- Private School) EFC ($1,240) + Unmet Need ($1,713) = $2,953 You can cover these costs by using: • Savings • Scholarships • PRIVATE doesn’t always mean more money out of your pocket.

24. Live at home Rent movies Ride a bicycle Use public transportation Learn to Cook $1,240 EFC ?? ($138 Monthly) Savings Shop at thrift stores No pets Toss a frisbee Buy used books Work during school breaks

25. Undocumented Students • If student is undocumented, contact MALDEF, Mexican American Legal Defense Fund, for advice and assistance. • (213) 629-2512 or www.maldef.org

26. Apply, Don’t Disqualify Don’t Miss Deadlines Don’t “Pre-guess” Computers Don’t Assume Anything Create a Safety Net

27. Financial Aid Workshop • Tuesday, December 15th, 2009 • 7:00 to 8:30 pm • Grace Mullen Auditorium • Gene Edelbach, CEO of California Preparatory College • Tuesday, January 12th, 2010 • 6:30 – 8:30pm • Blackstone Theater and Spanish Workshop in Career Center • Fermin Ramirez, Cash for College Program